A recently completed Pre-Feasibility study on the Andorinhas Iron Ore Project envisages a shallow open-cut operation producing in excess of 500,000tpa of saleable product. Negotiations with potential customers of the high grade hematite product are underway.

The development proposal will be considered by the Troy Board following final statutory approvals being granted. Current estimates are that all approvals will be granted in the December quarter enabling production to commence in the first half of calendar 2009.

The iron ore deposits are located in close proximity to Troy's existing gold operations at Andorinhas. Most of the infrastructure required for the project is already in place and Troy expects that construction and commissioning will be fast-tracked with minimal capital requirements expected for the development.

Snowden Mining Industry Consultants Pty Ltd are completing the NI 43-101 Technical Report and this will be filed and posted on SEDAR and the ASX within required 45 days.

Troy CEO Paul Benson said, "This is one more box ticked in the process of commercialising the high grade iron ore found on the Andorinhas leases. We hope to have off-take agreements with customers and all approvals by the end of this calendar year which would enable us to commence production in the first half of calendar 2009."

"Our initial focus has been to prove up a reserve sufficient to commence production and thus this first resource calculation covers an area that was easiest to access and develop. Once in production we will be able to determine market demand for the product. We can then extend exploration on targets along strike for colluvial hematite and/or the underlying insitu hematite BIFs. We are comfortable that should the market support an expansion in capacity we could significantly increase the resource."

"We don't expect iron ore will ever become the main product of Troy or Andorinhas but it certainly has the potential to be a great co-product."

The Andorinhas Iron Ore deposit is a colluvial deposit consisting of poorly sorted, compacted hematite fragments weathered from a primary Banded Iron Formation (BIF) source. The colluvium layer varies in depth from surface to 6m with an average depth below surface of 1.6m. Troy's News Release of August 4th 2008 reported Fe intersections from diamond core drilling of the in-situ BIF of up to 69.2 % Fe.

The Mineral Resource estimate is based on pit samples taken on an approximate grid spacing of 100m by 100m, and on thicknesses determined from pits and rotary airblast drillholes (RAB) completed on a grid spacing of 100m by 50m. The RAB drillholes identified the base of colluvium but were not sampled due to concerns with the representivity of colluvial samples derived by that method of drilling.

- A total of 233 pits were excavated into the colluvium to expose the entire colluvium profile.

- A channel sample was taken down the side of each pit. Then average weight of each sample was 47kg.

- The samples were split into three size fractions 6.3mm-15mm, 0.125mm-6.3mm and less than 0.125mm. The boulders larger than 15mm were unable to be representatively sampled and, from observation, consist of BIF. The distribution and sizing of BIF scree boulders is not well known and are expected to be mined and processed along with the other size fractions.

- The channel samples were processed as follows: The samples were dried in an oven for 24 hours then were sieved into three size fractions, greater than 6.3mm, 0.125mm-6.3mm and less than 0.125mm. Each of the size fractions was jaw crushed to less than 2mm (where applicable) and a 500g sub sample taken. The 500g sub sample was pulverised to greater than 125microns and a 125g sub sample was taken from this for assay at the SGS Belo Horizonte lab.

- Multi-element analyses were done using 0.25-0.50 g material. Samples were digested in a combination of HCl, HNO3, HClO4 and HF and taken to dryness. They were then brought up in aqua regia and the sample redissolved. The samples was then cooled and bulked to volume in volumetrically calibrated test tubes or flasks in the case of higher concentration samples and homogenized. Samples were analysed by atomic absorption spectrometry (AAS). Sample preparation was done at SGS Parauapebas, Para State, Brazil and the analysis was done at SGS Belo Horizonte, Minas Gerais State, Brazil.

- The Mineral Resource was estimated by industry standard methods. Geological wireframe models of the interpreted extents of the sampled colluvium were used to determine the volume of mineralised material. Grades were estimated using inverse distance squared grade interpolation.

- The Mineral Resource is estimated from the weighted average of the combined three size fractions and thus is an estimate of the grade of the colluvium excluding the oversize BIF boulders.

- Bulk average densities (dry basis) of 2.92 and 2.91 t/m3 were applied to the volume models of Abacaxi and Estrela, respectively. A total of 22 samples of several colluvium types were taken for bulk density measurements. The density measurements range from 1.77 t/m3 to 4.17 t/m3, and do not include determinations for the oversize BIF boulders.

- The Mineral Resource is classified as Indicated with respect to JORC Code (2004) and CIM (2005) guidelines to reflect the uncertainty in bulk densities. Troy intends to undertake bulk sampling and further testing to confirm the bulk densities.

- Mineral Resources are reported within a natural geological boundary and have an effective cut-off of 26% Fe for Abacaxi and 32% Fe for Estrela. These represent the lowest Fe grade pits sampled in each of the resource domains.

Table 2 (Mineral Reserves)

- Troy intends that the mining method will be by truck and excavator supported by dozers and that a saleable product can be prepared by crushing, washing and screening. It is intended that there will be no selective mining and that all colluvial material will be processed through the proposed plant.

- A further 19 pits were excavated to obtain bulk samples for pilot processing plant testwork. These samples were collected and assayed as above but were washed and scrubbed before assay to reflect the intended processing route. This removed any contaminating soil, detritus and weathered basement sediments that occur directly beneath the colluvium. These samples were prepared and assayed by Nomos Laboratories in Rio de Janeiro.

- Based on the results from the 19 test pits, processing and recovery modifying factors were applied to the Mineral Resource to estimate the Mineral Reserve (refer to table 3 and 4).

- The Mineral Reserve represents the 6.3mm - 15mm or lump fraction only. Mineralisation less than 6.3mm in size is not included in the Mineral Reserve estimates. Mineralisation present as oversize BIF boulders is not reflected in the Mineral Reserve estimates. Accordingly a Probable Reserve category is declared to reflect this uncertainty.

- Modifying factors applied to the Mineral Resource were:

-- Tonnage: 43.42% of the Mineral Resource reports to the +6.3mm size fraction

A full copy of this announcement can be found on the Company's website: www.try.com.au.

Information relating to exploration, sampling and analytical results, and information relating to the Mineral Resources and Mineral Reserve estimates in this report was prepared under the supervision of Peter J Doyle, a full-time employee and Vice President Exploration and Business Development of Troy, a "qualified person" under National Instrument 43-101 - "Standards of Disclosure for Mineral Projects", a member of the Australasian Institute of Mining and Metallurgy. Mr. Doyle has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration, and to the activity he is undertaking, to qualify as a "competent person" as defined in the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Doyle consents to the inclusion in the report of the exploration, sampling, analytical, the Mineral Resource and Mineral Reserve matters based on his information in the form and context in which it appears.

This report contains forward-looking statements. These forward- looking statements reflect management's current beliefs based on information currently available to management and are based on what management believes to be reasonable assumptions. A number of factors could cause actual results, performance, or achievements to differ materially from the results expressed or implied in the forward looking statements. Such factors include, among others, future prices of minerals, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in ore grade or recovery rates, plant and/or equipment failure, delays in obtaining governmental approvals or in the commencement of operations.

For purposes of Clause 3.4(e) in Canadian Instrument 43-101, the company warrants that Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.